Add a Recurring Fee to a Guarantee

Updated September 27, 2022 14:19.

There are two main categories of fees in Fairways Guarantees:

One-time fees: fixed fees calculated on a rate basis.
Recurring fees: calculated periodically on a rate basis as agreed with the guarantor.

Prerequisite

Navigate to the Guarantees Section

Add a Recurring Fee to a Guarantee

Note: Fields marked with an asterisk * are mandatory.

Field	Description
From	Payer.
To	Receiver.
Start Date	Start date of the fee phase. Note: By default, the same date as the effective date of the guarantee.
End Date	End date of the fee payment. Note: By default, the same date as the expiry date of the guarantee.
Invoicing Type	Fairways Guarantees automatically calculates fees according to 3 invoicing types: Invoicing: Fees paid by the principal(s) to the guarantor(s). Markup: Fees charged by the principal to the applicant, according to the internal rules of the group in terms of transfer pricing, for acting as an intermediary. Refund: Fees paid by the principal but due to being paid by the applicant.
End Date of First Period	End date of the first period, if it is a stub period.
Adjustment	Adjustment mode for the payment date.
Frequency	Frequency of the payments.
Calculation Mode	Basis amount used to calculate the fees.
Last Payment	Calculation mode of the last payment.
Rate	Rate applied.
Day Count Convention	Used to compute the day fraction of an interest accrual period.
Decimals	Count of decimals in the amount.
Rounding Mode	Rounding rule.
Currency	Currency in which fees are charged. It can be different from the currency of the guarantee.
Minimum Amount	Minimum amount of the fees that can be charged by the (local) guarantor.
Payment Method	Start of Period: In advance End of Period: In arrears

The new recurring fees display.

Adjustment

Adjustment modes define how the system rolls dates in case of holidays in the calendar.

Field	Description
None	Not rolled.
End of Month	Rolled to the last day of the month.

Day Count Convention

Field	Description
30E/360	30 days a month, assuming the year has 360 days.
30E/360 ISDA	30 days a month, with leap years of 366 days.
Actual/360	Actual day count of the period, assuming the year has 360 days.
Actual/Actual	Actual day count of the period on the actual day count of the year.
Actual/365	Actual day count of the period, assuming the year has 365 days.

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